>> i was interviewed pregnant for one of the jobs i had, i was hired. an employer can make that decision, but what if i came in and wasn't showing and i disclosed it or i was pregnant and didn't disclose it an employer will ask me. liz: what about that? >> my point is smart employers look at you according to the skill set you have to offer in that particular position. it shouldn't have to do with whether or not you're pregnant but let's be realistic, those family decisions of individual staff people do have implications. are you saying that if they're out there they should be overturned and left to the employer? >> it is a very sensitive issue but they should be

overlooked -- they should have another look. but now with the cause. >> final word mercedes. >> if the employer makes use signed the petition they are skirting the law and violating the law it is problematic. liz: i am sorry for if i was a little tricky at the end. tomorrow we have ronald reagan and former budget director. have a great evening. gerri: hello. tonight on "the willis report." a new federal tax policy with the push to make marijuana legal and tax it. obama proposes to delay automatic spending cuts after he blows another budget deadline.

and proved that leaders just want more power. not more power to the people. we are on the case. >> that and more coming up, but first the top story story, efforts building in washington to change change, rewrite, remake current marijuana laws including legalizing industrial production and have the federal pot tax. lawmakers quietly working on the bills one was introduced today one from oregon one from colorado calling for the end of federal pot prohibition. when next guest founder and executive director of the

drug policy alliance, ethan? >> it is like the repeal of alcohol prohibition. the public says it does not work and is not effective and it cost tens of billions of tax dollars come lead diverts resources and funding organized crime in mexico it is better to have a regulatory policy with state governments controlled with federal government has a modicum of control. gerri: day you agree? >> a column it was so easy. these bills have zero chance because they take up the barney franken then ron paul mantle. it is the extreme right and extreme left coming together. but the mom -- but the

lesson we want to do is legalize and normalize. for every dollar we get on alcohol and tobacco tax we spend $10 of lost social cost. it is a loss leader. gerri: before we debate let's dive down into the bill. regulate marijuana at the federal government regulates to denationalize the regulation, given back to the states, growers need a federal permit bureau on the one negative hero of alcohol tobacco marijuana and firearms. >> it is a lot be getting money to talk about this. marijuana can double the car crash rate. we need extreme policies.

we should reform the worst part of our policies to be locked up in jail but we don't have to legalize it to reverse the wrongs. it is a public health perspective. gerri: you have been around this tree together but is marijuana a gateway drug? >> it is when it is illegal because people go to the same drug dealer in the netherlands ridges separated , you don't see that. regardless of the politicians being chicken, over half the country says let's regulate like alcohol. polls across the country, every street -- wasting resources. gerri: chillon map 18 already allow medical marijuana, a lot of the country is already on the

page. >> but that parole marijuana law for the second time the average user is 32 year-old white male with no history of chronic illness. [talking over each other] >> let's go on to another area, the fact that these congressmen are saying we have $16 trillion in debt, $1 trillion in gold this year it is a great way to raise tax revenue. let me finish. so they will charge excise tax of 50% on the first sale. tax producers or importers pay $1,000 annually. >> and require the irs for the study of the industry

once they are involved is so slow on industry tax and it will never go away. >> you are exactly right. what do you think of the federal tax on marijuana? >> it is premature. gerri: you will not answer my question? >> down the road it could be a good idea but it is up to the states. [talking over each other] gerri: federal tax on marijuana? >> is this ability like? >> yes. let the states regulate. let the state's tax and regulate. >> we heard about a four lottery, gambling, tobacco, alcohol we spend more on the

social cost. gerri: what do you mean? the health costs, lost productivity, from this administration $193 billion, alcohol is 200 billion, tobacco is 190. >> and tobacco is more dangerous. gerri: that is debatable, my friend. we have to leave it there. the shouting is over. we appreciate your time. here is a question. log onto gerriwillis.com i will share the results tonight. -- of do all over washington again in the justice department goes to court

saying they were not to blame for the financial crisis so why is it paid back by the white house? next. ♪

gerri: in a world of banking and finance the rating agency's opinion is the last advice the big money puts down the many. the justice department slapped the biggest agency standard and poor's with the $1 billion lawsuit it.is shoddy job to rate the mortgage bonds that

exploded. in its defense will argue because of first amendment rights. i don't know who i am more surprised than just a part -- justice department or s&p? eric holder, five years later you suddenly find them asleep at the wheel? what about the home buyers who took on mortgages they couldn't afford, the banks, the investors to pick up every investment they to put their hands on. other rating agencies could have stopped the bare ground was obvious that the investments were junk. but the agency did not do that. but different from the banks the job is to rate investments, their readiness but it they did not stick their neck out they did not do their job. to use the first amendment to defend themselves is

ridiculous. ducking responsibility, hiding behind the constitution. repaid more than $187 billion to bailout fannie mae and freddie mac. 60 million homes went into foreclosure. but they pay by being forced out of their home and a never ending list of the attorney general's hit the metaphor for closures of the many but the rating agency? off scot-free until yesterday. more on the blame game with a federal prosecutor. could the free-speech defense work?

>> best said looks to extract their flesh from the bust but what about the folks who lost their charm?

gerri: the u.s. government blaming standard importers and the parent company for its part of these potential meltdown. to have an interesting defense. federal prosecutor, and thanks for having me. things for the argument being made. >> what the government is saying it is under the 1989 law that the s&p defrauded those that give federal jurisdiction. it is not a criminal case but with the aaa rating. >> the is and the desire for increased revenue downplays

the credit risk to favor the large investment bank. but the s&p says the lawsuit would be without factual or legal merit, they would be wrong saying it was driven by commercial considerations not by good faith. does that ring true to you? >> i think about being motivated by profit was a cheap shot. they are a for-profit corporation. but did they intend to defraud? note seizures were roughly over $30 million. that was the cheap shot by the doj. gerri: one thing that emerges now is just exercising the first amendment freedom. >> if i were to save making

a movie about my life then give me $1 billion it is a complete fraud. the put that aside. >> it is spee to could be fraudulent. >> other big questions come into play it is possible it could be downgraded once again their culture is really holding s&p v to the fire and that is the pressure point*, this lawsuit. it could be quid pro quo. do you believe that? >> i went to believe that the proudest day when i became the assistant attorney working for the department of justice it

would turn my stomach of a reduced as the hatchet guy but there are red flags. moody's and fitch gave the same ratings at the same time, they have not been sued, and the only ones to downgrade the government trading. why wasn't moody's and fitch included? gerri: a very good question and the one people are making today. the financial inquiry commission here is what they said, agencies were cogs in the real of financial destruction and enablers of a financial meltdown. >> that is a great sound by. those are great for lawyers like me but they don't win lawsuits. you have to have evidence and facts but i could point* to 100 different

things, that resulted in the financial perfect storm. so to say they are the cog in the real, should they not give aaa ratings, probably not. gerri: there were the last stop, the last break in the system, people getting mortgages in over their head the banks gave them the mortgages. by the end of the day the investors are looking for advice if it was a good investment they all said sure, we like it. >> altogether i agree. they were supposed to be the safety net if they had all done their jobs this could've been avoided. if s&p said it is john finn the others give it aaa, that does not solve a single problem or stop it.

if that is your position then go after all of them. gerri: maybe they will. anything can happen. look into your crystal ball years and years of litigation? millions of dollars spent on ridiculous attorney fees. >> the lawyers fair employment act if you listen you can hear the buzz saws cutting down trees for all the paper. they will argue and fight and settle with the allegation of no wrongdoing. gerri: you can see around the corner. thank you. another warning today about the nation's spending problem, obama misses the deadline to submit a budget. p does not miss the opportunity to place blame.

next. ♪

gerri: the cbo reduces the fiscal forecast for the next 10 years showing how the deficit affects the economy. rich reds and is in d.c. >> in the long term it slows us down the cbo forecast $845 billion budget deficit the first of less than $1 trillion annual deficits continue to shrink when they begin increasing deficits but in the next 10 years they will add almost $7 trillion to the national debt and 76 trillion by

20203. the national debt compared to the economy stabilizes and climbs much higher in the future. the director of the cbo says the primary culprit is health care spending. >> we still see substantial growth of health care spending over the 10 years and beyond. because of the number of people who will be eligible for medicare will be rising sharply. gerri: they expect gdp to rise this year and next year an average of 3.6% after that and then slowing. cbo expects unemployment average 8% this year and seven points six% next year that is the first time that has happened in 70 years. with the recent tax increases and spending cuts

the cbo says it will cost 1.2 5% percentage points of gdp but with deficits reduce it boost growth and employment in the future. gerri: while the cbo war and gas the president tried to put the squeeze on congress to pass small spending cuts and pass more tax hikes. what you think of the president's suggestion, does he have a right? >> no, not all. the cbo basic assumption is the sequesters cuts last 10 years and here is the cbo projections under the bus because they are too deep and will harm the economy. either the cbo or the president. gerri: but maybe the

president doesn't have a right. is there any other way to get big cuts? what is the right thing to do? >> they have a retreat right now in maryland and virginia with the retreat. but we have to get serious what drives the deficit. it is health care cost for the president is not serious about making spending cuts he honestly thinks we can raise taxes and lower the deficit. but the president does not want to touch it and tell he is serious we will continue with astronomical deficits. gerri: i look what the cbo says about the economy. >> i agree. the depressing number is one .4%. >> and one point* 9% last

year. >> you talk about 8% employment again and it is up 3% next year. bad is optimistic projection but why wouldn't you expect the economy to grow greater than 2%. [laughter] that will create a political problem for the president if the unemployment rate is above 8%, democrats will get very nervous and they will start to separate themselves. gerri: you say they are on a retreat i know they talk about tax increases that is what you hear from harry reid, tax hikes, spending cuts, when will they back off? they have already gotten them and don't seem satisfied.

>> no, they don't think they need to cut back spending in a serious way. elsie growth of medicare and medicaid spending a problem although the cbo said we will be assisted home of the military but by pushing the tax hikes they create uncertainty because they don't know what it is, but until they have certainty we will not grow the private sector and the president kicks the can down the road and the budget really hurts the private sector and until we pay more attention growth will be stagnant. >> i totally agree. the contemporary democratic parties separated itself they are now about the public economy but to send

revenue by the tax increase to the public economy i suspect we will see another year of fiscal gridlock they're not in the same hymnal. gerri: or at the same church or town or county. this is what has a jump-start if the growth is under 2%, 15 4% everybody is on the sidelines we'd want to commit to anything not just in and washington but tennessee e. l., cfo, did what to do anything. >> nobody does they're unsure what they have to pay down the road.

small business is the engine for the private sector. with any kicking the can down the road this will continue but when the growth is so low we just find more people on the public dole. and as such the private sector may never get off the ground that the government is the answer to all problems. gerri: do we take the sequester, a 42 billion, 85 billion, is that the way to do it? >> i see the united states has to send a signal and the ratings agencies we are capable of cutting spending so until the united states proves it can reduce spending europe and the rest

of the world will not do it in the economy will grow unacceptable long term. >> is all a head fake and a fake out. interesting to say we have to slow down the trajectory of growth but we don't talk about real cuts. just slowing down the growth to two different things. >> absolutely. that is why we got into the sequester would make it deal so awful we would have to negotiate. he wants to sidestep. until there is a better plan we have to go through with the sequester we have to send a message to the world to have to balance your books. gerri: the cbo is depressing. [laughter] thank-you to both of you. washington debates the household budget that --

question budget by household budgets are hit hard. nearly 4% goes to filling appear can -- take the highest since 1985 although we were close in 2008. each household closed at $3,000 per year on gas. as a result many changing driving habits trying to save cash or waiting in lines with cheap jack -- gas or cascading the cheapest route the we also spent time in traffic the american commuter spends nearly one full workweek stuck in traffic and it comes at a hefty price tag more than $800 on research and gas, lost productivity increased vehicle maintenance we waste 19 gallons per year and and at adds up. but if you figure have a bad the york, boston, los

angeles, and cisco drivers in the nation's capital spent 67 hours per year stuck in traffic. those are-- out the window. i would go crazy. the rising price of gas is of our ineptitude of the nation's leaders there things we do right now approve that keystone pipeline but some just refuse to do it. what you all are missing if you're not investing in unions not going down without a fight including the right to work and michigan will get the numbers by any means necessary. next. ♪

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gerri: big labor in michigan battling out the union boss plot revealed strategizing ways to go around the work to right off even at the expense of its workers but we have a labor policy director, thanks for coming back on the show. i was blown away. somebody is red-faced for sure. steven cook, members to indicate they wish to resign will be told they could only do so in august. we will use any legal means at our disposal. >> i'm not surprised.

not that they're not very good with the entire memo detailing strategies to keep membership and it was all lawsuits but throwing their own members under the bus with any means at their disposal to keep them from paying dues and not one word said by some real shape up our act so they stay with us just push bush bush. >> there is no right to work state, the pedal to the metal with the ways of doing business. this from the memo will be told, i gave you that, to leave the impact could be hit through bargaining strategy. gerri: you want to get

around the law? >> they do the forced educe claimed to get secondary contracts between the school district especially because of steve cook to extend the contract just the of clause for they have to pay the union to extend just those just 10 years as a to do with wages or benefits or working conditions but preventing them from getting right to work rights for tenures. is that good for membership were just that we do everything we can to make sure we get ours? gerri: you are there.

is there any reaction inside the union membership? you've got to think people will not like these tactics and that they are being told what to do civic union members feel they are in purgatory. that with two months from now they tried to take that away and extend contracts for a decade. a lot feel the rug has been pulled out from under them. gerri: the impact his economically extends to all states. what if all country was right to work? >> to specifically talk about the 22 states that gave workers freedom, we see higher wage growth and population growth and factor in cost of living, they're

actually making more. from the economic standpoint it helps workers. gerri: bring more companies into the states, there is a big debate if they make more money but we do see more economic opportunity. great conversation tonight. interesting, we will keep our eyes of the union bosses memos. >> thanks. it is all on michigan and confidential.com with all of these claims. gerri: we will put a link on the web site. that was fun. on this day 1919 the united artist was created to get

greater financial control over producing films for the biggest teams and hollywood. d. w. griffith, charlie chaplin, douglas fairbanks, they joined together to create there own film studio and united artist flourished by the '50s and to the production was so popular they began to fail stu's save the company transamerica corporation bought it at one 1/3 billion dollars at 1967 and sold at 300 million to mgm. some best pitcher ochs oscar winners one flew over the cuckoo's nest, a west side story coming it annie hall, rain man, a gm still has complete ownership that was created today jay your five, 94 years ago. the usual jobs created by obamacare and whiplashed on

wall street rises and sinks on monday and rises today. should use it out or play? next. his happy couple used capital one venture miles for their "destination wedding." double miles you can "actually" use. but with those single mile travel cards... [ bridesmaid ] blacked out... but i'm a bridesmaid. oh! "x" marks the spot she'll never sit. but i bought a dress! a toast... ...to the capital one venture card. fly any airline, any flight, anytime. double miles you can actually use. what a coincidence? what's in your wallet? [ all screaming ] watch the elbows ladies.

gerri: i've got whiplashed. the stock market on a heck of a ride one point* shy of triple digits and encouraging economic news after they saw as the biggest one day decline yesterday. in joining me with the

thoughts how to sit it out. this is nerve wracking i'm sure you hear this from your radio show. what you telling them what to do? >> get excited, it is the beginning of a major sustained bull market. we have been talking about this for years, here we are. don't miss out by being on the sidelines. gerri: i love the optimism. the people on the street think the market isn't doing anything. it is astonishing how by about average americans are kilowatts going on people are not open to hearing? >> there rodney dangerfield market with no respect. they live in the past and remembering their horrific losses of 2008 and failed to

realize that was five years ago that is ancient history with wall street standards and it wall street has doubled in value. gerri: but the change of sentiment you are starting to see that? >> 2008 through the end of last year we saw the net out with stock mutual funds people move the money to cash but suddenly starting the beginning of this year we see massive inflows, the people realizing the world did not come to an aunt, a currency is not worth less, that my pants were wrong for i am five years closer to retirement i'd better get on with it now they come back. there's over $2 trillion in

cash it will cause stock prices to skyrocket. gerri: i hear the naysayers and i understand, insider-trading. with companies like procter gamble, rampant, the flash crash, and explained moves, a 70% of the volume on the nyse the high frequency traders. no logic to the computer programs, of willy-nilly and they run the stock market. why should i get involved? >> none of that has anything to do with long-term investment strategy. 7092 was the first insider trading when the hamilton absorb so war dead ipo was the victim of the first trading case.

so what? with the aegean happens all the time. gerri: that's the problem. >> in 2006, it lasted 10 minutes but the difference between the waves of the ocean and the tide. gerri: this is a good point* if you're in for the of long-haul maybe you have time to wait out the flesh crash where have patients to move past insider trades but all the excitement of the line in the sand we're on the back to where we were. gerri: that is what is disappointing i has been here before. let's move higher. >> we will. but the market does not go like of bank cd, a straight up. but over history echoes of more than down. gerri: i am a big fan of

stocks that people are nervous. we appreciate your time. >> sure thing. gerri: does college worth the price of the addition? 2011 class left with the average debt of 20,000 from public, a 29,000 and private and that is the average spent more offer bang for your box 75 private colleges make of the best values schools from princeton review which is a well-regarded list, graduates are of the 29,000 both the list of schools make up the top five. ucla the average half is less than 19,000. the college of william and

mary, it is the steel total cost of everything, everything 20,000 with plenty of aid. number three new college of florida was less of a dozen students the average loan is just over $4,000 the average debt over 14,000. uc chapel hill with low cost of living average debt is less than 18 grand. number one best value college is university of virginia averaging around andi virginia averaging around andi 18,000 in onel of the present granted some kind of aid also 15,000 graduates. if you want to see the last go to the web site gerriwillis.com. an

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gerri: the movement grew ring in washington to change federal marijuana laws to legalize